Know how much the allowance will increase,

now central employees are getting 42 percent dearness allowance. It is expected that the AICPI index of DA will come on 31st July. This will be the final number for the calculation of dearness allowance. So far, from the figures that have come for this half year, it is clear that a 4 percent increase in DA Hike can be seen. This increase will be under the recommendations of the 7th Pay Commission.

Revision will happen this month.

Earlier, in March 2023, the government had increased the dearness allowance for the central employees. At that time an increase of 4 percent was announced. The next revision is to be done in this month. However, it is likely to be announced at the end of September or in October. The revision of dearness allowance depends on the AICPI index, the faster this index increases, the faster the dearness allowance (DA Hike) also increases.

According to the data of AICPI index of May 2023, dearness allowance has reached 45.58 percent . The index is at 134.7 points. There was an increase of 0.50 points in this. But, the figures for June are yet to come. Even if the index does not increase in June or there is a slight increase in the index, even then from July 2023, central government employees will get 46 percent dearness allowance.

4 percent increase is believed to be fixed

According to the 7th Pay Commission, dearness allowance (DA) is set to increase by 4 percent in July 2023. This is confirmed by the trend of the last 5 months. According to the price index ratio, the index has to increase by 0.65 points every month. If we look at this trend, then the number which was 43.08 percent in January can increase to 46.39 percent.

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Means they will also get arrears of 3 months (January, February, March). But, the amount of arrears is not given only by adding it to the dearness allowance. Other allowances are also added to this. That’s why it is not easy to calculate the amount of arrears. Today we will tell you how much money will come in the pocket of central employees as arrears according to their pay band. And how have they become rich.

Arrears will be received for the entire three months

The government has increased the dearness allowance of central employees by 4% and now the new rate has been increased to 42%. In such a situation, now there has been a substantial increase in his salary. It is generally seen that the calculation of the salary of the employees is made by adding DA to their basic.

but it’s not like that. Other allowances are also added to the salary and with the increase in DA, the final amount is also higher if it is added to the travel allowance. The DA of the employees has been increased from January 1. In such a situation, he will be given an arrear of 3 months. Now it is necessary to calculate the arrears of 3 months.

DA Arrears Calculator: How much arrears will be received?

In the 7th CPC level-1 of the central employee, the basic salary starts from Rs.18000 on GP 1800. Those in this band will get Rs 9477 including DA+TA. But, compared to the previous dearness allowance, you will get Rs 774 more. That means in 3 months a total of Rs 2322 will be given to them as arrears. These are the three months in which the increased DA has not been paid.

How much arrears will be received at Level-2?

Now in 7th CPC level-2 for central employees, the basic salary on GP 1900 starts from Rs 19900. These employees will get Rs 10275 including DA+TA. However, compared to the previous dearness allowance, Rs 850 more will come. Accordingly, the arrear of 3 months will be Rs.2550.

How much arrears will be available on Top Pay Band Level-14?

Now total level-14 have been made in 7th CPC for central employees. The GP in this level-14 is Rs 10,000. The basic salary on this starts from Rs.1,44,200. These employees will get Rs 70,788 including DA+TA. However, compared to the previous dearness allowance, Rs 6,056 more will come. Accordingly, the arrear of 3 months will be Rs 18,168.

How much will be arrears on the top basic salary of Level-14?

The maximum salary in 7th CPC level-14 for central employees is Rs 2,18,200. The calculation of arrears is the highest in this salary range. GP in Level-14 is Rs.10,000. The basic salary on this is Rs.2,18,200. These employees will get Rs 101,868 including DA+TA. However, compared to the previous dearness allowance, Rs 9,016 more will come. Accordingly, the arrear of 3 months will be Rs 27,048.

In which category is travel allowance available?

Travel Allowance is divided into 3 categories on the basis of pay matrix level. Cities and towns are divided into two classes. This classification has been done on the basis of the population of the cities. The first category – Higher Transport Allowance is for the city and other cities have been kept in the category of others. The formula for calculation is Total Transport Allowance = TA + [(TA x DA% )\/100].

How much is travel allowance?

TPTA in TPTA cities is Rs.1350 for level 1-2, Rs.3600 for level 3-8 employees and Rs.7200 for above level 9 employees. The rate of transport allowance available to employees of any one category is the same. Just the dearness allowance they get is added to it. For cities with higher transport allowance, Level 9 and above employees get transport allowance of Rs 7,200+DA.

For other cities, this allowance is Rs.3,600+DA. Similarly, employees from level 3 to 8 get 3,600 plus DA and 1,800 plus DA. Talking about Level 1 and 2, in this category, Rs 1,350+DA is available for first class cities, while Rs 900+DA is available for other cities.

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If you want to invest regularly without taking market risk, then Post Office Recurring Deposit (Post Office RD) is a better option. On the other hand, if you can take market risk directly or indirectly, then Systematic Investment Plan (SIP) can be a good option for investment. You will have fixed income on maturity in Post Office RD. Its interest rates are already fixed. There is no market risk in this. On the other hand, there is market risk in Mutual Fund SIP, but the returns are very attractive.

Post Office RD: ₹ 100 monthly investment

Investment in Post Office Recurring Deposit (PORD) can be started from 1,000 months. There is no maximum limit for investment in this. Right now 5.8 percent interest is being received on the RD of the post office. In this compounding of interest is done on quarterly basis.

Suppose, you are investing Rs 500 every month in post office RD, then after five years you will get Rs 69,694 on maturity. Your total investment in this will be Rs 60,000 and you will get Rs 9,694 as interest income. Similarly, if you deposit Rs 5,000 monthly, then in 5 years you will get Rs 3,48,480. Your investment will be Rs 3 lakh in this and there will be a wealth gain of Rs 48,480.

SIP: ₹1,000 monthly investment

If you have the ability to take market risk, then you can choose the option of investing in mutual funds. Investment in mutual fund schemes can be started with a SIP of Rs 1,000. The average return of most of the schemes in the long term has been 12% per annum.

Suppose, you can start a monthly SIP of Rs 1,000 in a mutual fund. If there is an average annual return of 12%, then after 5 years you can get Rs 82,486. Your investment in this will be Rs 60,000 and wealth gain of Rs 22,486. Similarly, if you do a monthly SIP of Rs 5,000, then in 5 years you will get Rs 4,12,432. Your investment will be Rs 3 lakh in this and there will be a wealth gain of Rs 1,12,432.

(Disclaimer: Returns are calculated based on a calculation here. This does not constitute investment advice. Investment in Mutual Funds is subject to market risks. Do your own research or consult your advisor before investing.)

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Central Government Employees news: Dearness allowance of central employees has increased. They are getting paid at the rate of 38 per cent. But, in the last several years, the demand for increasing the fitment factor of central employees has not been noticed. Now the central government is paying attention to this. 

On the basis of the recommendations of the 7th CPC, the idea of ​​increasing the minimum salary of central employees is going on. Actually, the central government does not want to upset its employees. Therefore, alternatives are being considered to make them happy. According to sources in the Finance Ministry, the fitment factor can be increased. 

At present, on the basis of fitment factor, the minimum salary of central employees is Rs 18000. The fitment factor has been fixed at 2.57 times. The demand of the central employees was that it should be kept 3.68 times. Had this been the case, the minimum salary would have been Rs 26,000. But, now the new discussion is that it can be agreed to increase it to 3 times. However, any decision on this will be taken only after the budget next year.

How much can the salary increase?

For example, if the fitment factor is increased to 3 times, then there can be a bumper increase in the salary of the employees. Suppose the basic salary of a central employee is Rs 18,000, then his salary excluding allowances will be 18,000 X 2.57 = Rs 46,260. If this is considered as the maximum under the recommendations, then the salary will be 3.68 times 26000X3.68 = Rs 95,680. Employees will get bumper benefit in this. At the same time, having 3 times the fitment factor, the salary will be 21000X3 = Rs 63,000.

Fitment factor decides salary

The fitment factor plays an important role in deciding the salary of central employees (CG Employees Salary). According to the recommendations of the 7th Pay Commission, the salary of central employees is determined by their basic salary and fitment factor in addition to allowances. This is the factor that increases the salary of central employees by more than two and a half times.

What is meant by fitment factor?

As per the recommendations of the 7th Pay Commission, the fitment factor is 2.57. While fixing the salary of central employees, the basic salary along with Dearness Allowance (DA), Traveling Allowance (TA), House Rent Allowance (HRA) is calculated by multiplying the fitment factor 2.57 of 7th Pay Commission (7th Pay Commission latest update). Is. 

DA increased by 4 percent

The government calculates the average of inflation for the first 6 months of the year, in which it is counted from January to June. After this, the inflation average is calculated for the second half. On this basis, the increase in DA is decided. DA is always higher than average inflation. Dearness Allowance has been increased by 4 per cent to 38 per cent for the period up to July 2022. After the increase in DA, TA is increased on the same basis. Increase in DA is also linked to TA. Similarly, HRA and medical reimbursement are also decided. When all the allowances are calculated, then the monthly CTC of the central employee is fixed.

Contribution of PF, Gratuity

After all the allowances and salary are finalized, now it comes to the monthly Provident Fund (PF) and gratuity contribution. PF and gratuity contribution is linked to basic salary and DA. The PF and gratuity of a central employee is determined by his formula. When all allowances and deductions are made from CTC, then the take home salary of the central employee is fixed. 

The post 7th Pay Commission: Bumper Benefit! After dearness allowance, now the number of fitment factor, salary may increase by Rs 49,420 first appeared on Rightsofemployees.com.

This pay commission gives recommendations to make the salary of the employees in line with the current environment. On the basis of this, first the central and then the state governments restructure their salaries. This benefits all government employees.

So far 7 pay commissions have been constituted

So far 7 pay commissions have been constituted in the country. The first pay commission in the country was formed in January 1946. At the same time, the last i.e. Seventh Pay Commission was constituted on February 28, 2014. In such a situation, it has been 8 years since the 7th Pay Commission, so the atmosphere of discussion about the 8th Pay Commission has become heated in the employees’ organizations. If this happens, then 68 lakh central government employees and 52 lakh pensioners will get its direct benefit.

The government has refused for the time being

When the Central Pay Commission will be constituted, questions are being asked from the employees’ unions to the government. However, during the monsoon session, the government has made it clear that at present, it does not have any proposal under consideration to make the eighth pay commission. Minister of State for Finance Pankaj Choudhary said in Parliament on Monday that at present there is no idea on the 8th Pay Commission.

How much can the salary increase

The government may have refused the Pay Commission for the time being, but there is a flurry among the employees’ unions about it. Organizations say that at present the minimum wage limit has been kept at Rs 18,000. In this, the fitment factor in increment is 2.57 times, although the 7th Pay Commission recommends keeping it to 3.68 times. If the recommendation is accepted, then the minimum salary of central employees will increase from Rs 18 thousand to Rs 26 thousand.

Will Pay Commission be abolished?

It is also being heard that after the 7th Pay Commission, its tradition will end. That is, after this 8th or any other new pay commission will not come. Instead, the government can implement an automatic increment system. In this, the salary increase of government employees will be done automatically. It can be like increment in private jobs. In this, if the DA is more than 50 percent, there will be automatic revision in the salary.

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